The Straits Times
Published on Jan 03, 2013

US stocks rocket after fiscal cliff deal; Nasdaq up 3.1%


NEW YORK (AFP) - United States (US) stocks took off flying on the first trading day of the new year on Wednesday after Congress reached a last-minute deal to avert the fiscal cliff, avoiding forcing the economy back into recession.

The S&P 500 soared 2.5 per cent, its best rise since Dec 20, 2011, as traders shrugged off the specter that a new deficit fight between Democrats and Republicans was just weeks away to go on a buying spree.

The Dow Jones Industrial Index closed up 308.41 points (2.35 per cent) at 13,412.55.

The broad-based S&P 500 added 36.23 (2.54 per cent) at 1,462.42, while the Nasdaq outperformed with a 92.75 point gain, or 3.07 per cent, to 3,112.26.